How to Start Dropshipping Business with a WooCommerce Store?

Modern eCommerce retail comes in three forms — Normal Retail, Affiliate, and Dropshipping. 

Normal retail includes purchasing and storing inventory, setting up online stores, marketing the store, packaging, and shipping when an order is received, handling return and exchange, etc. All of that requires a physical office, high initial investment, a bigger team, and full-time work. 

Not affordable to everyone. 

While the affiliate model is a good way to build a passive income, it may take months or even years to cross the threshold limit and start making considerable revenue. As an affiliate, you are just a good referrer, not the brand. You earn for referring and not for selling.

Dropshipping — the most affordable and the easiest way to sell online. You can develop yourself as a brand at a very low initial investment, especially with the WooCommerce platform. and you can start making profits within a week or month (based on marketing).

Your buyers will find it hard to determine if you are a dropshipper or a full-fledged online retailer. Inventory stocking and shipping is not your burden. You just have to pass your acquired order to your supplier and the rest is their responsibility. 

So, 

Let’s start building your WooCommerce dropshipping business from scratch. 

I have designed this article not to leave you half-way in your business. In this article, first, we will learn to set up an online store with WooCommerce, then convert it into a dropshipping store, marketing it, and earning profit from the sales. 

The dropshipping companies we took here as examples are:

• Spocket
• AliDropship

Further, we chose the WooCommerce platform instead of Shopify and BigCommerce, because it’s more customizable, cost-effective, and popular. With WooCommerce, everything is yours, and in your control.

What is Dropshipping?

Dropshipping is an easy way of selling products online at low investment without any burden of managing stock and shipping. It is a modified version of normal order fulfillment in online retail.

And, fortunately, with the WooCommerce platform, dropshipping turns far more cost-effective and customizable.

Further, it’s a scalable business, therefore, you can start at the shore and expand into the ocean of possibilities. 

How Dropshipping Works?

It works on the principle of “buy-and-sell one product at a time“. Furthermore, buying when an order has already been received. 

In dropshipping, you stay in constant connection with the supplier through a platform (which we will soon discover). The supplier lets you display their product in your store, which can be easily done in a few clicks, and every bit of product detail is imported to your online store.  

Apparently, the product is yours. But, the actual product always resides in the supplier’s warehouse.

After marketing and promotion, you start receiving orders in your online store. As a dropshipper, you simply have to pass-on the order request to your supplier. Your supplier handles the shipping process in return for a small shipping cost.

You are free to sell products at whatever price you can convince your customers to pay. And the profit is calculated as:

In dropshipping, your major task is acquiring customers. 

Pros and Cons of Dropshipping

So far, I have only stressed the positive aspect of dropshipping but it would be a cold injustice if I don’t show you the negative side of dropshipping. There is definitely a reason why not everybody is in the dropshipping business. 

Dependency on the supplier is the biggest drawback in the dropshipping business. Although, previously I have mentioned that the supplier handles inventory and shipping, and that’s what makes dropshipping so easy, but EASY doesn’t mean BETTER. 

You have no access to inventory stock and shipping, thus the customer services related to them are not in your control. Customers may experience poor services and you won’t be able to do much.  

Even with a couple of downsides, dropshipping is yet an amazing business to start and grow before you set up your own inventory and shipping. 

Early Needs and Planning

Now, we have enough knowledge of what dropshipping is and how it works. I want you to keep up your motivation and forget everything else. 

It’s time for some real preparation. You need not go anywhere, you can do it on your couch. 

 Needs:

1. A good computer system (or laptop)
2. Stable internet connection
3. Get a team of two or three (If you feel the need)

These three things are easily manageable. And, I guess you already have them. Let’s move on to some planning. 

Planning:

The planning tasks include: 

1. Research on your product niche
2. Get your shop name, logo, tagline
3. Research for your dropshipping supplier/company
4. Manage your initial investment ($500 to $800 for a year)

Fixing the type of product that you want to sell in your WooCommerce dropshipping store is the first and most crucial step. It can be anything that fascinates you, for which you can easily find customers. But, choosing anything that is in demand, with a high-profit margin is better. 

For example, if you choose fashion products or clothing, the profit margin is good but the competitor is high. Similarly, other niches have their own market demand, pros, and cons.

Next is choosing your shop name, logo, and tagline — which I guess isn’t that hard. You can use Canva, from designing logos to anything. 

Finally, selecting a dropshipping company is the most critical part of setting up your dropshipping business. Here’s the list of companies for WooCommerce dropshipping:

• Spocket (14 days free trial)
• WooDropship (7-day free trial)
• AliDropship
• Dropified (14 days free trial)
• Wholesale 2B (7-day free trial)
• Dobo (30 days free trial)
• Inventory Source

So, you have gathered good knowledge. Let’s start by building a WooCommerce store. 

Action… 1 (WooStore Set-Up)

There are several platforms to build online stores, such as Shopify, BigCommerce, Wix, Facebook shop, etc. But, out of all, WooCommerce is the most popular eCommerce platform. Nearly 26% of the total eCommerce website is built on WooCommerce. 

 

Setting Up Your WooCommerce Store

Disclaimer: This section contains an affiliate link. Clicking on the affiliate link will not cost you anything but it will help us to earn a commission for our coffee.

WordPress was primarily not meant for building eCommerce websites. But, WooCommerce, a free WordPress plugin can immediately transform your WordPress-powered website into an eCommerce website. You can immediately add or import products and sell them soon after installing and customizing the WooCommerce plugin to your website. Other plugins can be installed for additional features. 

In dropshipping, neither the product is yours, nor you have to ship it. Hence, it’s much easier to carry out this business (that’s why we are learning it).

The first action you need to take is to set up your WooCommerce store!

And, how can you do that?

You have two ways — do it yourself or hire a developer. 

I will not immediately suggest you go for an expert’s or developer’s help. 

Since we are in the learning stage, why not learn how to set up a WooCommerce store in short (But, for a serious dropshipping business, I do suggest you to get a developer to ensure that everything is done fine) 

First, you need to reserve a space in the server to host your eCommerce website. I highly recommend you Hostinger.

The reason why I am recommending Hostinger is that it’s cost-effective. And, they offer 30 days of money-back guarantee. The control panel is user-friendly that within a couple of days, you will feel at home. Their services are great and live support is available 24/7/365. 

The steps that you need to buy hosting is fairly easy and simple. 

• Visit Hostinger
• Choose your hosting plan. Hostinger offers three plans in the web hosting category.
• Select the time period

• Purchase the plan. Pay securely using:

• Register your domain name in the control panel
• Install WordPress and launch your website.
• You will land on the WordPress dashboard from where you can continue with the website and WooCommerce design.

Tip: In case of any issue, contact live chat support. They will immediately solve your every query.

Phew!!

Are you feeling tired of how to carry out these store setups? It may look scary as you are getting into it for the first time. But, let me make it easy for you. 

MakeWebBetter will set your complete WooCommerce store for you. It will purchase hosting, install WooCommerce, set up WooCommerce plugins, set up themes, activate SSL, etc. Overall,  MakeWebBetter will build a complete WooCommerce store for you at a reasonable and affordable price. 

Comparison: If you have to set up the same store on Shopify, the basic plan would cost you $29 per month plus a 2% transaction fee; 

That is, $2 for every $100 of the transaction (if you are not using the Shopify payment method)

Action… 2  (WooCommerce Dropshipping)

We would be heading towards the next action — transforming your newly built WooCommerce store into a WooCommerce dropshipping store. 

I have selected 2 dropshipping companies to get you started. 

1. Dropshipping with Spocket
2. Dropshipping using AliDropship plugin

You can start with any of the dropshipping companies, which you find most convincing. 

1. Dropshipping With Spocket

Spocket connects you with thousands of suppliers for US and EU products. The products can easily be imported to your WooCommerce store, in a few clicks. It gives your full access to product details and cost price. You can modify the product details as per your offers strategy. 

The plan offered by Spocket are:

To install the Spocket plugin, follow these steps:

• Go to “Add New” in the plugin.
• Search for Spocket
• Click on “Install Now” and Activate it.

After installation, a new menu item with the name “Spocket” is added. With this menu, you can communicate between your WooCommerce store and Spocket’s main account. 

To connect this plugin with Spocket, you need to have a Spocket account. Creating it is a matter of 2 minutes. Here are the steps.

Visit Spocket sign up page. Fill in your name, email address, and type of products you want to sell. And, it’s done.

Note: Please fill in the actual detail, as you are planning a serious dropshipping business.

Now, after signing up, the home screen of Spocket appears. The menu option that you see on the left vertical includes:

1. Search Product: Using this, you can explore thousands of products that Spocket brings you from different suppliers, mainly from the US and EU.
2. Import List: Here, you will see the list of your chosen product that you have decided to sell at your dropshipping store.
3. My Product: This contains a list of products that you have added to your WooCommerce store for dropshipping.
4. Orders: When you start receiving orders at your WooCommerce dropshipping store, it all appears here.
5. My Shop: Using this menu, you can jump to your WooCommerce store from the Spocket dashboard.

And Other: There are a few other options, such as Apps, settings, and Help Centre for other Spocket facilities. 

After connecting your WooCommerce store to Spocket, and purchasing the Spocket plan, you get access based on the plan you purchase. 

Now, to import products to your WooCommerce dropshipping store. Follow the steps as:

• Search the product that you want to sell. You can use a search-bar and filter to find out specific products.
• Click on “Add to Import list“.
• Now, in the import list menu, edit the product details if you wish.
• Finally, click on “Push to Store“

Source: Spocket

After importing, your WooCommerce store will have all the products in its product list, ready for making sales. 

Marketing is your next action, which is a constant need for your dropshipping business. I have mentioned the top strategies that you can get started with in the last section of this article. 

No matter which dropshipping companies you choose for your dropshipping business, those marketing methods will be always helpful. 

2. Dropshipping Using AliDropship Plugin

AliExpress is the most popular dropshipping supplier. It is a Chinese based eCommerce company, hence the products are supplied from China. The shipping is fulfilled using ePacket, which is a fast and free delivery option. 

Note: Dropshipping with AliDropship is not possible in India because the Government of India has recently banned AliExpress for national security reasons. So, before setting up AliDropship, check government policies regarding it in your country and then only proceed. But, looking at the popularity of AliExpress, it’s worth discussing. 

First of all, you need to install the AliDropship plugin for WooCommerce. The plugin costs a total of $89, a one-time payment. The process is simple.

• Purchase the plugin
• Download the plugin
• Upload the plugin on WordPress, Install, and Activate it.

A new menu of AliDropship will be added to the WordPress menu. This menu will contain all the settings that are needed to manage the dropshipping business and interface between AliExpress and your WooCommerce Store.

Along with this, you need to install AliDropship Chrome Extension and authorize it with your website domain.

This Chrome extension will let you edit and import products from AliExpress to your WooCommerce store. Along with this, it will show AliExpress store ratings, search out low-priced products, filter out products that have an ePacket Express shipping option, and import reviews and real-time photos of products left by customers. 

After the plugin and Chrome extension, you can start importing the product from AliExpress. 

The process of importing products is simple much like in Spocket. 

• Open AliExpress, and browse products
• Click on the import icon, to add to the import list.

• You can edit every detail of the products. And, once you are convinced, click on import.

It’s done. All the products are added to your WooCommerce store, ready to make sales.

A small note:

When researching dropshipping, you may have come across Oberlo, SalesHoo, and few other popular dropshipping companies; you may be curious to know why I haven’t discussed those good dropshipping companies above. 

Your question is valid.

The reason why I haven’t discussed these companies is that they all work with Shopify stores. And we are dealing with WooCommerce stores here. 

Marketing Your Dropshipping Store

So, your WooCommerce dropshipping store is loaded with products of our choice, rate, and description (from the supplier). The supplier is ready to manage the shipping, return and exchange (if applicable), and other services. 

But the business is yet not working! 

To convert this structured business into a working business, you need to build a loyal customer base — which is your major task in the dropshipping business. 

Marketing is the only way to set foot in the market. Since the store is digital, thus marketing the store digitally would be more effective. Don’t forget to check the hottest marketing methods in the coming days, i.e., Inbound Marketing. 

Here are some marketing strategies that are a must, and no store can afford to avoid them.

1. Search Engine Optimization (SEO)

Search Engine Optimization (SEO) ensures that your online store, content, product, etc. ranks on the SERPs. This is the best marketing technique to build organic traffic. Also, people click more on organically-fetch Google results than on paid ads. 

Here is an example of how Myntra has acquired top ranking for “Wrist Watch” organically through their SEO. And, thus buyers are more likely to give a try to Myntra. 

Remember, SEO takes time, and hence apart from this, you need to use paid methods as well.

2. Paid Ads

Ranking on the first page for selected keywords in selected geographical areas is possible by paying a small amount to search engines (like Google).

For example, Amazon ranking using paid ads. for the keyword “hand watch”.

3. Social Media Marketing

Social media is now a virtual world in itself. 

You may not find all mainstream humans on earth, but you will get them all on social media. Definitely, they are there. Therefore, it opens an enormous possibility of targeted marketing. 

Source: Globalwebindex

Social media platforms, such as Facebook, Twitter, Instagram, Pinterest, etc., could be a good way to acquire a huge volume of customers. 

Pro Tip: Don’t underestimate paid advertisement for your recently started eCommerce business. The paid advertisement would expand your reach immediately helping you acquire customers earlier than expected with organic marketing methods.  

4. Referral Marketing

Referral marketing makes your marketing campaign a win-win campaign. Hence, with referral marketing, you can easily turn your buyers into your referrals.

Referral marketing can boost your business all of a sudden. All you need is to be good in mathematics and make calculations in such a way that you and your buyers both get benefited.

5. Content Marketing

Google or other search engines love content. Content gives exposure to your business, solves queries, and enlightens readers with knowledge. Content pieces that are shareable, automatically build a special place among the readers on social media and personal space. 

Best Practices for Dropshipping

1. Try Multiple Dropshipping Companies & Compare Everything

Almost all good dropshipping companies offer free trials. Why let this excellent opportunity go unused? I would highly recommend you to try the free version of all major dropshipping companies during your research stages and compare everything. Compare means, exact comparison, product by product. 

Search for the same products on each of them, compare their prices, refund policy, shipping time, product supplier, reviews, product variations. I consider this as a MUST for the research stage. 

2. Balance Your Paid And Organic Marketing Methods

Your marketing efforts need to have a balance between short-term and long-term strategies. Long term marketing strategies such as content marketing helps in tightening the grip in the market while short term strategies such as paid ads bear instant results. The best is to have a balance between them from the initial days. 

3. Build Audience Before High-Profit Margin

Profit margin in an eCommerce business is a decisive factor for revenue generation. A higher profit margin means higher revenue. But, as beginners, don’t rush to increase profit margin, instead, stress more upon building loyal customers and providing them excellent customer service. 

Conclusion

So, are you excited about your new WooCommerce dropshipping business? 

With this article, I have tried to line up all the dots into an order needed for starting a dropshipping business with the WooCommerce platform.

With all these steps, an average of $500 to $800 of investment is needed for setting up a WooCommerce store, purchasing hosting, purchasing dropshipping companies plans, and marketing. 

This amount is far less than what it would need to set up inventory and shipping.

At last, MakeWebBetter, a WooCommerce connoisseur and HubSpot Gold Solution partner, is providing you with a special offer in setting up a WooCommerce store for you. Further, it also offers you an all-round digital marketing agency that helps you with SEO, paid ads, referral marketing, points and rewards, and other powerful marketing methods. 

So, grab it all in one place. 

At last, the dropshipping business isn’t so hard, neither too risky. Get up and make it happen. 

The comment section is all yours. Mention me there in case you encounter any difficulty, and I will be there to help you out.